Interesting article about Oil

wanghong

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' i9 ]) W" U1 o6 @4 S- RBelow is an Interesting article I found, which says that.....Do not
- K# h  @4 c6 Q" V% k" ^expect much from Crude Oil producers and future is not with the
# S1 L% k$ M  t* u6 n" c8 E4 \* tcompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
& I4 m6 h; }$ [: S8 T& |# Z# Tcrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils

Recently OPEC reduced crude oil production twice over just a few
+ X% B$ v/ h2 s  _; Hmonths. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
' W# {3 e( @4 e7 o8 j0 Pleast $50.00 per barrel. Today, oil price declined by a record amount.


There are several reasons the price of oil is decreasing in the face
$ N7 L! S. @+ Y. i8 V8 Lof so much news. These reasons are:

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1. New oil has been found in Canada, Montana, North & South Dakota and
& r" L* e  g- m6 _  v5 vin the ocean near Brazil. Each of these oil fields has more oil than
Arabia.
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2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.


, H- z& |# ^( l) h3. New methods of injecting CO2 and surfactants into oil wells is
* O8 y, v: w. t. Q1 o- \3 [! k1 wbeing used to double their output.


4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
+ g! Y* K3 k. L0 A8 f2 z& P- xracing to produce bio fuels.


5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.

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6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
4 W7 F9 ?2 i/ ^4 O1 l2 `expected to be built in the future. Much of the energy they produce
+ x& L' k& j- D4 }8 Gwill replace oil.

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4 G( @4 m1 O$ j6 h7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
( |6 y3 G6 U' T8 iwith new more fuel efficient equipment. Airlines and railway companies
4 I) [' D5 F) u2 T) e7 L% [. Rare experiencing 20% to 25% better fuel econony with the new
* c0 U  Y9 L2 ]) ~- O, {$ Wequipment.


* X% j% f: I5 [- P! T( l; u  O: NAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
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8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
4 b+ A) t8 ^) L# bavailable at very little cost or risk. The gas is displacing crude
0 |9 U' b2 E/ t3 a! t7 Joil.
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! r0 s. R9 x% I7 s5 x2 c# t, y9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
. j" k0 ^2 ~5 Q$ z; M. e0 K  `; d5 W: @oil wells.
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10. Solar, wind and ocean energy is displacing oil as an energy
; t9 a/ J5 r1 {& e* Jsource. Three new wind turbines are being erected every day in the US.
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Each of the above by itself will not make a large difference in the
price of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
8 }- N2 q" o* E* `0 ~to control oil prices.

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With the above scenario, I still believe that there are under
/ Q* W$ W! f0 Q' j/ yperformed OIL companies and probably they are yet to get the justified
value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only